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Colorado limited liability company, a provider of intelligent retail solutions for gym owners and coaches, including the management
of retail sales, up front inventory purchases, ongoing inventory management, payments, marketing, and related services. Under
a joint venture agreement dated March 14, 2017, the Company co-operates WOD with WOD Holdings Inc. (&#8220;WODH&#8221;), a Delaware
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further operational effect or obligation to the Company, except for certain amounts owed by the Company under a further amendment
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accompanying unaudited condensed consolidated financial statements of the Company are presented in accordance with the requirements
for Form 10-Q and Regulation S-X. Accordingly, they do not include all of the disclosures required by generally accepted accounting
principles. In the opinion of management, all adjustments (all of which were of a normal recurring nature) considered necessary
to fairly present the financial position, results of operations, and cash flows of the Company on a consistent basis, have been
made. The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting
principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (&#34;SEC&#34;),
and should be read in conjunction with the audited financial statements and notes thereto contained in our annual 10-K filing,
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to continue its operating activities. The amount of capital required to sustain operations is subject to future events and uncertainties.
The Company must secure additional working capital through loans, sale of equity securities, or a combination, in order to implement
its current business plans. There can be no assurance that such funding will be available in the future, or available on commercially
reasonable terms favorable to the Company. These conditions raise substantial doubt about the Company's ability to continue as
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accompanying condensed consolidated financial statements have been presented on the basis of the continuation of the Company as
a going concern and do not include any adjustments relating to the recoverability and classification of recorded asset amounts
or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going
concern. Management continued to manage its costs for the Nine months ended September 30, 2018 to ensure appropriate funding is
on hand for its limited operations.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Principles
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consolidated financial statements have been prepared in accordance with generally accepted accounting principles and include the
accounts of the Company and its subsidiaries, Dynamic Energy Development Corporation and Transformation Consulting, Inc. All intercompany
balances and transactions have been eliminated in consolidation.</font></p>
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preparation of financial statements in conformity with United States generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. The Company regularly evaluates estimates and assumptions related to intangible assets and deferred income tax asset valuation
allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors
that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the
carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources.
The actual results experienced by the Company may differ materially and adversely from the Company&#8217;s estimates. To the extent
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Certain
reclassifications have been made in Statement of Operations for the year 2017 to the period ended September 30, 2017. These reclassifications
impacted the classification of certain items within the Statement of Operations: relating to classification of interest expense.
The reclassifications had no impact on previously reported total operating expenses, net loss, or stockholders' deficit.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Development
Costs</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Development
costs are expensed in the period they are incurred unless they meet specific criteria related to technical, market and financial
feasibility, as determined by management, including but not limited to the establishment of a clearly defined future market for
the product, and the availability of adequate resources to complete the project. If all criteria are met, the costs are deferred
and amortized over the expected useful life, or written off if a product is abandoned. For the three months ended September 30,
2018, the Company incurred no development costs. As of September 30, 2018, the Company had no deferred product development costs.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Income
Taxes </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Potential
benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted
the accounting standards codified in ASC 740, Income Taxes as of its inception. Pursuant to those standards, the Company is required
to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses have not been
recognized in these financial statements because the Company cannot be assured it is more likely than not that it will utilize
the net operating losses carried forward in future years.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">ASC
740-10-25 prescribes recognition thresholds that must be met before a tax position is recognized in the financial statements and
provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.
An entity may only recognize or continue to recognize tax positions that meet a &#34;more likely than not&#34; threshold. Based
on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its
financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company does not have any unrecognized tax benefits as of September 30, 2018 that, if recognized, would affect the Company's effective
income tax rate. The Company's policy is to recognize interest and penalties related to income tax issues as components of income
tax expense. The Company did not recognize or have any accrual for interest and penalties relating to income taxes as of September
30, 2018 and December 31, 2017.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Cash
and Cash Equivalents</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Cash
includes all highly liquid instruments with an original maturity of three months or less at the date of purchase. At September
30, 2018, the Company had no cash equivalents.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Fair
Value of Financial Instruments</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company&#8217;s financial instruments consist of cash and cash equivalents, accounts payable, accrued liabilities, line of credit
payable, loans from a related party, contingent consideration payable, and convertible note payable. The carrying amount of these
financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market
rates unless otherwise disclosed in these financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Fair
Value Measurement </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company values its derivative instruments under FASB ASC 820 which defines fair value, establishes a framework for measuring fair
value, and expands disclosures about fair value measurements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Fair
value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would
use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation
technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair
value balances based on the observability of those inputs. ASC 820 establishes a fair value hierarchy that prioritizes the inputs
used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
three levels of the fair value hierarchy are as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
1 &#8211; Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets
are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information
on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities
and listed equities.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
2 &#8211; Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly
observable as of the reported date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
3 &#8211; Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may
be used with internally developed methodologies that result in management&#8217;s best estimate of fair value.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company's financial instruments consisted of cash, prepaid expense, deposit, accounts payable and accrued liabilities, line of
credit, loan from stockholders and convertible debt. The estimated fair value of cash, prepaid expense, deposit, accounts payable
and accrued liabilities, line of credit, loan from stockholders approximates its carrying amount due to the short maturity of
these instruments. The recognition of the derivative values of convertible debt are based on the weighted-average Black-Scholes
option pricing model.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Revenue
Recognition </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company recognizes revenue in accordance with the FASB ASC Section 605-10-S99, Revenue Recognition, Overall, SEC Materials (&#34;Section
605-10-S99&#34;). Section 605-10-S99 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive
evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and
(4) collectability is reasonably assured.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Impairment
of Long-Lived Intangible Assets</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">We
review our long-lived assets, including intangible assets subject to amortization, for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment, if any, is measured as the excess
of the carrying amount over the fair value based on market value (when available) or discounted expected cash flows of those assets,
and is recorded in the period in which the determination is made. Intangible assets not subject to amortization are tested annually
for impairment and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset
is impaired</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Net
Income (Loss) Per Common Share</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Basic
loss per common share (&#8220;EPS&#8221;) is calculated by dividing the net loss available to common shareholders by the weighted
average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities
or other contracts to issue common stock were exercised or converted into common stock. The number of common shares that are exercisable
or converted into common stock is not material to effect diluted EPS results. Further, since the Company shows losses for the
periods presented basic and diluted loss per share are the same for all periods presented</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Common
Share Non-Monetary Consideration</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 33.75pt"><font style="font: 10pt Times New Roman, Times, Serif">i.
In situations where common shares are issued and the fair value of the goods or services received is not readily determinable,
the fair value of the common shares is used to measure and record the transaction. The fair value of the common shares issued
in exchange for the receipt of goods and services is based on the stock price as of the earliest of the date at which: the counterparty&#8217;s
performance is complete;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 33.75pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 33.75pt"><font style="font: 10pt Times New Roman, Times, Serif">ii.
commitment for performance by the counterparty to earn the common shares is reached; or</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 33.75pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 33.75pt"><font style="font: 10pt Times New Roman, Times, Serif">iii.
the common shares are issued if they are fully vested and non-forfeitable at that date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Stock-Based
Compensation</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
December 1, 2005, the Company adopted the fair value recognition provisions codified in ASC 718, Compensation-Stock Compensation.
The Company adopted those provisions using the modified-prospective-transition method. Under this method, compensation cost recognized
for all periods prior to December 1, 2005 includes: a) compensation cost for all share-based payments granted prior to, but not
yet vested as of November 30, 2005, based on the grant-date fair value and b) compensation cost for all share-based payments granted
subsequent to November 30, 2005, based on the grant-date fair value. In addition, deferred stock compensation related to non-vested
options is required to be eliminated against additional paid-in capital. The results for periods prior to December 1, 2005 were
not restated.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company accounts for equity instruments issued in exchange for the receipt of goods or services from parties other than employees
in accordance with ASC 505, Equity. Costs are measured at the estimated fair market value of the consideration received or the
estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments
issued for consideration other than employee services is determined on the earliest of a performance commitment or completion
of performance by the counterparty.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Share
Purchase Warrants</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company accounts for common share purchase warrants at fair value in accordance with ASC 815, Derivatives and Hedging. The Black-Scholes
option pricing valuation method is used to determine fair value of these warrants. Use of this method requires that the Company
make assumptions regarding stock volatility, dividend yields, expected term of the warrants and risk-free interest rates.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Recently
Issued Accounting Pronouncements</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Other
than as set forth below, management does not believe that any recently issued, but not yet effective accounting pronouncements,
if adopted, would have a material effect on the accompanying financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">None.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Myers
&#8211; Line of Credit (LOC)</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
or about September 1, 2013, the Company and Sarah Myers, an individual (and, also the President, Chief Operating Officer and Director
of the Company) (&#34;Myers&#34;) executed that certain Revolving Line of Credit Agreement (the &#34;LOC Agreement&#34;) for advances
up to a total amount of USD$50,000 for the purposes of providing Company with working capital, as needed from time to time, as
set forth in the executed Promissory Note (the &#34;Myers Note&#34;) dated on even date therewith, in the original amount of USD
$50,000 (collectively referred to as the &#34;Original Myers Agreements&#34;). The Original Myers</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Agreements
were amended a total of five (5) times during the period of 2013 to 2016 to provide additional working capital for the Company,
which increased the principal amount to $175,000.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Ninth
Amendment to Line of Credit</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
May 18, 2016, the Company and Myers executed the Ninth Amendment to the LOC Agreement (the &#34;Ninth Amendment&#34;), pursuant
to which the parties mutually agreed to cancel and otherwise terminate the effectiveness of the Original Myers Agreements dated
September 1, 2013, as amended, whereby Myers would no longer extend any funds to the Company, pursuant to the terms of the Original
Agreements, in exchange for the issuance of an amended and restated convertible redeemable note (the &#34;Amended and Restated
Note&#34;) in the principal amount of $175,000.00, at ten percent (10%) interest per annum commencing on January 1, 2016 (the
&#34;Effective Date&#34;), due and payable to Myers by Company in seven (7) separate equal quarterly payments of Twenty-Fifty
Thousand Dollars (USD $25,000), plus accrued interest to date, due on the first day of each quarter beginning on the date of the
first quarter following the date of execution of this Note (each a &#34;Maturity Date&#34;), convertible into shares of the Company's
common stock at a conversion price equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest
trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions
set forth therein.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
principal amount due on the Myers Note at September 30, 2018 was $149,500. These amounts are unsecured and bear interest at the
rate of 12% per annum. The accrued interest under the Myers Note as of September 30, 2018 was $86,310.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Baker
Myers Note and Share Cancellation and Exchange Agreement</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
May 18, 2016, the WOD Retail Solutions, Inc.(the &#34;Company&#34;) Company and Baker Myers and Associates LLC, a Nevada limited
liability company (&#34;Baker Myers,&#34; an entity owned by Sarah Myers, the President, Chief Operating Officer and Director
of the Company) executed a Note and Share Cancellation and Exchange Agreement (the &#34;Share Exchange Agreement&#34;), with respect
to that certain unsecured Promissory Note (the &#34;Original Baker Myers Note&#34;) dated on or about January 13, 2013, in the
original amount of $587,500 (the &#34;Original Amount&#34;), pursuant to which Baker Myers agreed to forego and waive any and
all right in, entitlement to or interest in (A) a total of $87,500 in principal, a total of $92,465 in accrued interest, late
charges, reimbursable attorneys' fees, reimbursable expenses and any other sums due and payable under the Original Baker Myers
Note totaling $179,965 (the &#34;Cancelled Amount&#34;) as of the date of execution (the &#34;Effective Date&#34;), any future
payments due under the Original Baker Myers Note and all or any other of Baker Myers's rights under the Cancelled Amount of the
Original Baker Myers Note, thereby extinguishing and canceling the Cancelled Amount of the Original Baker Myers Note and terminating
any and all of Company's obligations thereunder, (B) the Shares (hereinafter also referred to as the &#34;Cancelled Shares&#34;)
in exchange for the issuance an Option Agreement (the &#34;Option Agreement&#34;), registered in the Baker Myers's name to purchase
up to a certain number of membership interests (the &#34;EDM Membership Interest&#34;) of Elite Data Marketing LLC, a Florida
limited liability company (the &#34;EDM&#34;), in an amount totaling one hundred percent (100%) of the ownership interest in EDM
(the &#34;Option 1&#34;), (B) the issuance by Company to Baker Myers of a three-year &#34;cashless&#34; common stock purchase
warrant (the &#34;Warrant No. BM-1&#34;) for the right to purchase a total of 3,000,000 shares of Series B Preferred Stock of
the Company (the &#34;Preferred Warrant Shares&#34;), at a purchase price of $0.001 per share, with certain rights and preferences
as set forth in the certificate of designation (the &#34;Certificate of Designation of Series B Preferred), in exchange for the
Cancelled Shares, as referenced in the Share Exchange Agreement, and (C) the issuance of an amended and restated convertible redeemable
note (the &#34;Redeemable Note&#34;) in the aggregate principal face amount of Five Hundred Thousand Dollars (US$500,000), at
ten percent (10%) interest per annum commencing on date of execution (the &#34;Effective Date&#34;), due and payable by the Company
in eight (8) separate equal quarterly payments of Ninety-Two Thousand Five Hundred Dollars (USD $62,500), plus accrued interest
to date, due on the first day of each quarter beginning on the date of the first quarter following the date of execution of this
Original Baker Myers Note, convertible into shares of the Company's common stock at a conversion price equal to the lesser of
$0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject
to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
or about March 14, 2017, the Company and Baker &#38; Myers &#38; Associates LLC, a Nevada limited liability company (&#34;Baker
Myers,&#34; an entity owned by Sarah Myers, a former Secretary, Treasurer and Director of the Company) executed a Note Cancellation
and Extinguishment Agreement (the &#8220;Note Cancellation Agreement&#8221;), pursuant to which Baker Myers (also herein referred
to as &#8220;Releasor&#8221;) decided to exercise the entire Option Agreement for the acquisition of Elite Data Marketing LLC,
a Florida limited liability company (the &#34;EDM&#34;), as set forth in the Share Exchange Agreement, dated May 18, 2016, in
which Releasor agreed to forego and waive any and all right in, entitlement to or interest in any principal, interest, late charges,
reimbursable attorneys&#8217; fees, reimbursable expenses and any other sums due and payable with respect to a total of Two Hundred
Thousand Dollars (US$200,000) of the final two (2) quarterly payments of the Redeemable Note dated May 18, 2016 (the &#8220;Cancelled
Sum&#8221;), and any future payments due under the Cancelled Sum of the Redeemable Note and all or any other of Releasor&#8217;s
rights under the Cancelled Sum of the Redeemable Note, thereby extinguishing and canceling the Cancelled Sum of the Redeemable
Note and terminating any and all of Releasee&#8217;s obligations thereunder Cancelled Sum of the Redeemable Note, effective as
of March 14, 2017 (the &#8220;Effective Date&#8221;), in exchange for the assignment and transfer by the Company of any and all
of the issued and outstanding membership interests owned and held by Releasee representing a total of One Hundred Percent (100%)
of the ownership interest of EDM to Releasor on the Effective Date (the &#8220;Cancellation Transaction&#8221;), pursuant to the
Assignment of Membership Interests (the &#8220;Assignment&#8221;), attached as Exhibit A to the Note Cancellation Agreement, and
including other terms and conditions set forth therein.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Cancellation Transaction and Assignment resulted in Elite Data Marketing LLC, which was created in May of 2016 to hold the assets
of www.classifiedride.com originally acquired by the Company from Baker Myers, no longer being a subsidiary of the Company, with
no further operational effect or obligation to the Company.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
principal amount due on the Baker Myers Note at September 30, 2018 was $300,000. These amounts are unsecured and bear interest
at the rate of 12% per annum. The accrued interest under the Baker Myers Note as of September 30, 2018 was $138,833.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>JSJ
Investments Inc.</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
September 11, 2015, the Company issued a 12% Convertible Note (the &#8220;JSJ Note&#8221;) to JSJ Investments, Inc, (&#8220;JSJ&#8221;)
in the principal amount of $100,000 receiving cash proceeds of $88,000 after payment of related legal and broker fees. The JSJ
Note bears interest at the rate of 12% per annum, and was due December 11, 2015 (the &#8220;Maturity Date&#8221;). The embedded
conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 <i>Derivatives and Hedging</i>. Pursuant
to ASC 815, &#8220;<i>Derivatives and Hedging</i>&#8221;. On the Maturity Date Company recognized a derivative liability of $91,388
based on the Black-Scholes pricing model and recorded a corresponding derivative loss of the same amount. JSJ is entitled to convert
all the outstanding and unpaid principal amount of the Note into Common Stock at a 45% discount to the lowest trading price during
the previous twenty (20) trading days to the date of the conversion notice. JSJ converted $14,417 of the principle into common
stock after the maturity date and as of December 31, 2015, the balance outstanding on the JSJ Note was $85,583 and, accrued interest
was $6,625. On January 28, 2016, JSJ made a formal demand for repayment of the Note payable by February 26, 2016 and has threatened
litigation if payment is not tendered. This could be considered an event of default where by JSJ could enforce the Company to
redeem all or any portion of the Note so demanded (including all accrued and unpaid interest), in cash, at a price equal to 150%
of the outstanding balance, plus accrued Interest and Default Interest and any other amounts then due under this Note. At the
time of the filing of this Report, JSJ has converted a total of $21,903 of the principle into shares of the Company&#8217;s common
stock, resulting in principal balance remaining of $78,097 and accrued interest of $33,176.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>LG
Capital Funding, LLC</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
September 16, 2015, the Company issued a 6% Convertible Note (the &#8220;LG Note&#8221;) to LG Capital Funding, LLC
(&#8220;LG&#8221;) in the principal amount of $52,500 receiving cash proceeds of $45,000 after payment or related legal and
broker fees. The LG Note bears interest at the rate of 6% per annum and is due September 16, 2016 (the &#8220;Maturity
Date&#8221;). The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 Derivatives
and Hedging. Pursuant to ASC 815, &#8220;<i>Derivatives and Hedging. </i>Based on the Black-Scholes pricing model, the
Company recognized the fair value of the embedded conversion feature of $73,459 as a derivative liability on the date in
which the note become convertible on December 16, 2015. The Company recorded a debt discount in the amount of $48,412 and a
one day derivative expense of $25,047 in connection with the initial valuation of the derivative liability, to be amortized
utilizing the effective interest method of accretion over the term of the Note. The conversion features of the note are at
price equal to 58% of the lowest closing bid price of our common stock for the ten trading days on or prior to the date upon
which notice of conversion is received. After the conversion date loan cannot be paid back in cash unless expressly permitted
by LG Capital. As of March 31, 2016, the balances outstanding on the LG Note were principle of $42,239, accrued interest was
$2,035 and the note discount was $23,845. At the time of the filing of this Report, LG Capital has converted a total of
$10,261 of the principal and interest of $281 into shares of the Company&#8217;s common stock, resulting in principal balance
remaining of $42,239 and accrued interest of $8,419.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Adar
Bays, LLC</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
September 16, 2015, the Company issued a 6% Convertible Note (the &#8220;Adar Note&#8221;) to Adar Bays, LLC (&#8220;Adar&#8221;)
in the principal amount of $52,500 receiving cash proceeds of $45,000 after payment or related legal and broker fees. The Adar
Note bears interest at the rate of 6% per annum and is due September 16, 2016 (the &#8220;Maturity Date&#8221;). The embedded
conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 Derivatives and Hedging. Pursuant to ASC
815, &#8220;<i>Derivatives and Hedging. </i>Based on the Black-Scholes pricing model, the Company recognized the fair value of
the embedded conversion feature of $73,459 as a derivative liability on the date in which the note become convertible on December
16, 2015. The Company recorded a debt discount in the amount of $48,412 and a one day derivative expense of $25,047 in connection
with the initial valuation of the derivative liability, to be amortized utilizing the effective interest method of accretion over
the term of the Note. The conversion features of the note are at price equal to 58% of the lowest closing bid price of our common
stock for the ten trading days on or prior to the date upon which notice of conversion is received. After the conversion date
loan cannot be paid back in cash unless expressly permitted by Adar Bays, LLC. As of March 31, 2016, the balances outstanding
on the Adar Note were principle of $14,787, accrued interest was $2,205 and the loan discount was $5,245. At the time of the filing
of this Report, Adar has converted a total of $37,713 principle into shares of the Company&#8217;s common stock, resulting in
principal balance remaining of $14,787 and accrued interest of $4,451.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>EMA
Financial, LLC</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
July 14, 2015, (the &#34;Note Issuance Date&#34;), the Company entered into a Securities Purchase Agreement (the &#34;SPA&#34;)
with EMA Financial, LLC (&#34;EMA&#34;), whereby EMA agreed to invest $156,500 (the &#34;Note Purchase Price&#34;) in our Company
in exchange for a convertible promissory note (the &#34;Note&#34;). The Company netted cash proceeds $135,000 after brokerage
and legal fees aggregating $21,500 was disbursed at closing. Additionally, the Company issued to EMA 100,000 shares of Common
Stock of the Company as a loan fee. Pursuant to the SPA, on July 14, 2015, we issued a convertible promissory note (the &#34;Note&#34;)
to EMA, in the original principal amount of $156,500 (the &#34;Note Purchase Price&#34;), which bears interest at 12% per annum.
All outstanding principal and accrued interest on the Note is due and payable on the maturity date, which is July 14, 2016 (the
&#34; Maturity Date&#34;). EMA may extend the Note Maturity Date by providing written notice at least five days before the Note
Maturity Date. However, EMA may only extend the Note Maturity Date for up to an additional one-year period. Any amount of principal
or interest that is due under the Note, which is not paid by the Note Maturity Date, will bear interest at the rate of 24% per
annum until it is paid (the &#34;Note Default Interest&#34;). The Note is convertible by EMA into shares of our common stock at
any time on the date which is Nine (6) months following the Issue Date (&#34;Prepayment Termination Date&#34;). At any time before
the Prepayment Termination Date, the Company shall have the right, exercisable on not less than five (5) Trading Days prior written
notice to EMA of this Note, to prepay the outstanding balance on this Note (principal and accrued interest), in full. The conversion
price is the lower of: i) the closing sale price of the Common Stock on the Principal Market on the Trading Day immediately preceding
the closing date, and (ii) 60% of the lowest sale price for the Common Stock on the Principal Market during the 20 consecutive
Trading Days immediately preceding the Conversion Date. EMA does not have the right to convert the Note into Common Stock if such
conversion would result in EMA's beneficial ownership exceeding 4.9% of our outstanding Common Stock at that time. At the time
of the filing of this Report, EMA has converted a total of $21,423 of principle into shares of the Company&#8217;s common stock,
resulting in a principle balance remaining of $135,077 and accrued interest of $55,495.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Birch
First Capital Fund, LLC</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Litigation</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
August 16, 2013, Birch First Capital Fund, LLC, a Delaware limited liability company, and/or Birch First Capital Management, LLC,
as its manager (collectively, &#8220;Birch First Capital&#8221;) filed a complaint against the Company in the 15th Judicial Circuit
of Florida (2013 CA 012838) alleging breach of contract under a Line of Credit Agreement (&#8220;LOC&#8221;) totaling $151,000.
On November 18, 2013, Birch First brought a lawsuit in the 15th Judicial Circuit of Florida against Mr. Charles Cronin and Dr.
Earl Beaver (former officers and directors of the Company), naming the Company as a nominal defendant. A motion to dismiss was
filed by the Company concerning this derivative lawsuit, which is still currently pending. On July 23, 2015 the Parties finalized
the settlement agreements, which lead to the conclusion of Case 2013 CA 012838.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Settlement</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
July 23, 2015, the Company and Birch First Capital Fund LLC (&#8220;Birch First Capital&#8221;), a Delaware limited liability
company and Birch First Advisors LLC, a Delaware limited liability company (&#8220;Birch Advisors&#8221;), executed a Settlement
and Stipulation Agreement (the &#8220;Settlement Agreement&#8221;) dated July 21, 2015, pursuant to which the parties dismissed,
with no liability admitted or deemed to be admitted by any party, any and all claims that have been, or could have been, raised
in the outstanding litigation between the parties (the &#8220;Litigation&#8221;).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
July 23, 2015, pursuant to the terms and conditions of the Settlement Agreement, the Company executed an amended and restated
convertible debenture (the &#8220;Amended and Restated Note&#8221;) dated July 21, 2015 in the total amount of $300,000 bearing
two percent (2%) interest per annum for a period of two years for the benefit of Birch First Capital. Pursuant to the terms of
the Amended and Restated Note, $75,000 of the principal balance would be immediately converted at $0.10 per share for a total
of 750,000 shares of the Company&#8217;s Common Stock issued within five (5) days from the date of execution of the Settlement
Agreement. The remaining $225,000 in principal and interest of the Amended and Restated Note will be convertible on a quarterly
basis in the amount of $37,500 into shares of the Company&#8217;s Common Stock at a share price equal to the lesser of $0.10 per
share, or fifty percent (50%) of the three (3) lowest intraday trading average for the twenty (20) day trading period prior to
each conversion date, until paid in full, with accrued and unpaid interested due and payable in the final payment, under certain
terms and conditions set forth in the Amended and Restated Note. The Company recognized and expensed non-cash settlement fees
aggregating $85,842.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
original note contains an embedded conversion option and is separated from the Note and accounted for as a derivative instrument
at fair value and discount to the Note. Using the Black-Scholes option pricing model, the fair market value of the of the of the
embedded conversion option at inception was determined to be $472,028 with the following assumptions: risk-free rate of interest
of .711%, expected life of 2.0 years, expected stock price volatility of 175.371%, and expected dividend yield of zero. The initial
carrying value of the embedded conversion option was $472,028 exceeded the note and $225,000 was attributed to the note discount
and $247,028 to a one day derivative loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
parties agreed to amend certain parts of the Amended and Restated Note. As of December 31, 2015, Birch and the Company had not
specified the terms of any such amendment, but, at the mutual agreement of the parties, no shares have been issued pursuant to
the Amended and Restated Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
2017, Birch First Capital Fund LLC acquired an additional $1,500,000 of notes from various notes that were already outstanding
and their associated accrued interest. The remaining balance on all notes at the time of this filing was $1,800,000 with accrued
interest of $554,501.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Birch
Advisors, LLC</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
July 23, 2015, pursuant to the terms and conditions of the Settlement Agreement referenced herein, the Company executed a new
Consulting and Advisory Agreement (the &#8220;Agreement&#8221;) dated July 21, 2015 with Birch Advisors, LLC (&#8220;Consultant&#8221;)
for a period of twenty-four (24) months to commence upon the execution date of the signed Agreement, payable in the form of a
convertible debenture (&#8220;New Note&#8221;) in the amount of $300,000 at two percent (2%) interest per annum for a period of
two years. Pursuant to the Agreement, Consultant shall be paid $37,500 each quarter in the form of a reduction of the outstanding
principal balance of the New Note, convertible into shares of the Company&#8217;s Common Stock at a share price equal to the lesser
of $0.10 per share or a twenty-five (25%) discount of the three (3) lowest intraday trading average for the twenty (20) day trading
period prior to each conversion date, until paid in full, with accrued and unpaid interest due and payable in the final payment.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Consultant will perform advisory and consultation services to the Company, including, but not limited to, assisting Company&#8217;s
management with general corporate operations, business development strategies, marketing and business plans, SEC compliance and
advising the Company on other ad-hoc matters as appropriate. The parties agreed that either the Company has the right to terminate
the Agreement earlier for non-performance by the Consultant. The Agreement also contains other customary and standard provisions.
The convertible note liability will be recorded as the quarterly benchmarks are reached.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
original note contains an embedded conversion option and is separated from the Note and accounted for as a derivative instrument
at fair value and discount to the Note. Using the Black-Scholes option pricing model, the fair market value of the of the of the
embedded conversion option at inception was determined to be $84,267 with the following assumptions: risk-free rate of interest
of .711%, expected life of 1.69 years, expected stock price volatility of 170.599%, and expected dividend yield of zero. The initial
carrying value of the embedded conversion option was $84,267 and exceeded the note and $72,267 was attributed to the note discount
and $12,000 was recorded one day derivative loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
parties agreed to amend certain parts of the New Note that would mutually benefit each party. As of December 31, 2015 the Consultant
and the Company had not specified the terms of any such amendment, but, at the request of the Consultant, no shares have been
issued pursuant to the New Note. Birch completed the services during the Nine months for the period ended December 31, 2015, and
the parties have mutually agreed to not issue the shares payable at this time. The Note payable is accrued by quarter since it
depends on the services being performed.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>First
Amendment to Settlement Agreement</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
May 18, 2016, the Company and Birch First Capital Fund LLC (&#34;Birch First Capital&#34;) and Birch First Advisors LLC (&#34;Birch
Advisors&#34;) executed the First Amendment to the Settlement Agreement (the &#34;First Amendment&#34;), pursuant to which the
parties mutually agreed to amend and restate the amended and restated convertible debenture (the &#34;Original Amended Note&#34;)
in the original amount of USD $300,000 (the &#34;Original Amended Note Amount&#34;), the convertible debenture (the &#34;Original
New Note&#34;) in the original amount of USD $300,000 (the &#34;Original New Note Amount&#34;) and the original consulting agreement
(the &#34;Original Consulting Agreement&#34;) dated on or about July 23, 2015, to reflect the following: (a) the execution of
an Amended and Restated Convertible Redeemable Note (the &#34;Amended and Restated Redeemable Note No.1&#34;) in the principal
amount of USD $400,000, at a rate of ten percent (10%) per annum commencing on July 23, 2015, convertible into shares of the Company's
common stock at a conversion price equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest
trading price for the ten (10) prior trading days, and other terms and conditions set forth therein, (b) the issuance by Company
to Birch First Capital a three-year &#34;cashless&#34; stock purchase warrant (the &#34;Warrant No.1&#34;) for the right to purchase
a total of 4,000,000 shares of Series B preferred Stock of the Company (the &#34;Preferred Warrant Shares&#34;), at a purchase
price of $0.001 per share, on the terms and conditions set forth therein, (c) the execution of an Amended and Restated Convertible
Redeemable Note (the &#34;Amended and Restated Redeemable Note No. 2&#34;) in the principal amount of USD $300,000, at a rate
of ten percent (10%) per annum commencing on July 23, 2015, convertible into shares of the Company's common stock at a conversion
price equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten
(10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein,
(d) the execution of an Amended and Restated Consulting Agreement (the &#34;Amended and Restated Consulting Agreement&#34;) on
the terms and conditions set forth therein, including, but not limited to, for a period of twenty-four (24) months, with consideration
payable to Birch Advisors and/or its assigns in cash in the amount of Ten Thousand Dollars ($10,000.00) per month, including,
any and all payments set forth Amended and Restated Redeemable Note No.2, and the issuance by the Company to Birch First Advisors
and/or assigns a three-year &#34;cashless&#34; stock purchase warrant (the &#34;Warrant No.2&#34;) for the right to purchase up
to 1,000,000 shares of common stock of the Company (the &#34;Common Warrant Shares&#34;) each month a strike price of $0.001 per
share (the &#34;Exercise Price&#34;), and (e) the acceptance by the Company of the execution of the Assignment of Amended and
Restated Redeemable Note No.2 (hereinafter referred to as the &#34;Assigned Note&#34;) between Birch Advisors and Birch First
Capital, in which Birch Advisors agreed to assign the ownership interest of Assigned Note to Birch First Capital, on the terms
and conditions set forth therein, of which the Company was not a party, however, provided consent at the request of Birch Advisors
and Birch First Capital Fund.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
2017, Birch First Advisors LLC assigned its outstanding note and accrued to interest to Birch First Capital Fund and acquired
the outstanding note of Properties of Merit. The balance of the current note as of this filing is principle $17,500 and accrued
interest of $1,750.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Tarpon
Bay Partners &#8211; Line of Credit</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
conjunction with the Equity Line as discussed in Note 15 below, the Company issued a promissory note to Tarpon Bay Partners for
$50,000, due on January 31, 2016, with 10% interest per annum as consideration for transaction costs incurred by Tarpon. The $50,000
of transaction costs will be treated as a note discount under current Generally Accepted Accounting Principles and the discount
will be amortized as costs related to equity financing issuances. At September 30, 2018, the note balance and accrued interest
was $50,000 and $15,860, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">This
note was sold by Tarpon Bay Partners LLC in the second quarter 2018 to SeaCor Capital LLC.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Convertible
Redeemable Note for Unpaid Invoices</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
May 18, 2016, the Company and JMS Law Group PLLC (&#34;JMS&#34;) executed a settlement letter (the &#34;Settlement Letter&#34;)
in which the parties agreed to settle unpaid invoices for services rendered by JMS to the Company in the amount of $20,000, and
further agreed to pay JSM a total of $7,500 for continued services to the Company until July 31, 2016.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Pursuant
to the terms of the Settlement Letter, the Company issued to JMS a Nine month convertible redeemable note (the &#34;Note&#34;)
in the principal amount of USD $27,500, at a rate of ten percent (10%) per annum commencing on date of issuance , convertible
into shares of the Company's common stock at a conversion price equal to the lesser of $0.01 per share or a discount of fifty-eight
percent (58%) of the lowest trading price for the ten (10) prior trading days, and other customary and standard terms and conditions
set forth therein.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">At
September 30, 2018, the note balance and accrued interest was $27,500 and $8,258, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Bravo
20 Partners Notes</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
2017, Bravo 20 Partners LLC acquired $2,200,000 of various outstanding notes and accrued interest. There were no changes to the
terms of any of the notes. The principle and interest balances as of this filing were $2,200,000 and $679,280, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Oscaleta
Partners LLC Note</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
2017, Oscaleta Partners LLC acquired $100,000 of an outstanding note. The Company agreed to a change in the note raising the interest
rate to 18% per annum and changing the conversion rate to 50% of the lowest trading price in the prior 30 days. As of this filing
there have been conversions of $1,805 of principle and $2,433 of interest. The outstanding principle and interest balances at
September 30, 2018 were $98,195 and $30,442, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
2018, the Company was advised that Oscaleta Partners LLC had returned the notes to their original owners or sold a portion to
existing note holders of the Company who are in good standing with regulatory agencies.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>JSM
Capital Note</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
2017, JSM Capital acquired $500,000 of various notes and accrued interest. There were no changes to the terms of any of the notes.
The principle and interest balances as of this filing were $500,000 and $152,920, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Rimlinger
Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
or about January 10, 2017, the Company and Charles Rimlinger, an individual (the former Chief Executive Officer and Director of
the Company) (the &#34;Rimlinger&#34;) executed a Separation and Settlement Agreement (the &#8220;Rimlinger Settlement Agreement&#8221;),
pursuant to the termination of his service as an officer and director of the Company, in exchange for the issuance of a one year
Convertible Redeemable Note (the &#34;Rimlinger Note&#34;) in the principal amount of USD $40,000, at a rate of ten percent (10%)
per annum commencing on date of issuance, convertible into shares of the Company's common stock at a conversion price equal to
the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading
days, and other terms and conditions set forth therein. The Note balance and accrued interest at September 30, 2018 were $40,000
and $6,900, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Ricketts
Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
or about January 10, 2017, the Company and Dr. James G. Ricketts, an individual (the former Chairman of the Board and VP of Investor
Relations of the Company) (the &#34;Ricketts&#34;) executed a Separation and Settlement Agreement (the &#8220;Ricketts Settlement
Agreement&#8221;) in which the parties terminated both the Contractor Agreement (&#8220;Ricketts Contractor&#8221;) dated on or
about May 18, 2016, and the Board Member Service Agreement (&#8220;Ricketts Board Agreement&#8221;) dated on or about May 18,
2016, in exchange for the issuance of a one year Convertible Redeemable Note (the &#34;Ricketts Note&#34;) in the principal amount
of USD $40,000, at a rate of ten percent (10%) per annum commencing on date of issuance, convertible into shares of the Company's
common stock at a conversion price equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest
trading price for the ten (10) prior trading days, and other terms and conditions set forth therein. The Note balance and accrued
interest at September 30, 2018 were $40,000 and $6,900, respectively. Ricketts returned 500,000 Series B Preferred shares in settlement
valued at $2,500,000 recorded as a gain on settlement in the financial statements included in this filing.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Antol
Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
January 10, 2017, the Company and Stephen Antol, an individual (the former Chief Financial Officer, Secretary and Treasurer of
the Company) (the &#34;Ricketts&#34;) executed a Separation and Settlement Agreement (the &#8220;Settlement Agreement&#8221;)
in which the parties terminated the Contractor Agreement (&#8220;Antol Contractor&#8221;) dated on or about May 18, 2016, in exchange
for the issuance of a one year Convertible Redeemable Note (the &#34;Antol Note&#34;) in the principal amount of USD $40,000,
at a rate of ten percent (10%) per annum commencing on date of issuance, convertible into shares of the Company's common stock
at a conversion price equal to the lesser of $0.01 per share or a a discount of fifty-eight percent (58%) of the lowest trading
price for the ten (10) prior trading days, and other terms and conditions set forth therein. The Note balance and accrued interest
at September 30, 2018 were $40,000 and $6,900, respectively. Antol returned 500,000 Series B Preferred shares in settlement valued
at $2,500,000 recorded as a gain on settlement in the financial statements included in this filing.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>WOD
Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
August 26, 2016, WOD Markets LLC advanced a total of Forty Thousand Dollars ($40,000) to DEAC for the purposes of funding the
completion of DEAC&#8217;s audit and required SEC filings, secured by two (2) separately executed Convertible Redeemable Notes
(&#8220;WOD Notes&#8221;). These notes bear no interest and are repayable should the acquisition of WOD Markets LLC fails to be
completed within the terms of the amended purchase agreement and subsequent joint venture agreement that terminates if not funded
December 31, 2018.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">At
September 30, 2018, the Note balance and accrued interest were $40,000 and $8,395, respectively.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
fair market value of the derivative instruments liabilities at September 30, 2018, was determined to be $6,804,731 with the following
assumptions: (1) risk free interest rate of 2.12%, (2) remaining contractual life of years .01, (3) expected stock price volatility
of 137%, and (4) expected dividend yield of zero. Based upon the change in fair value, the Company has recorded a gain on derivative
instruments for the Nine months ended September 30, 2018 of $21,318,228 and a corresponding decrease in the derivative instruments
liability.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
entire amount of derivative instrument liabilities are classified as current due to the fact that settlement of the derivative
instruments could be required within twelve months of the balance sheet date.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company values its derivative instruments under FASB ASC 820 which defines fair value, establishes a framework for measuring fair
value, and expands disclosures about fair value measurements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Fair
value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would
use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation
technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair
value balances based on the observability of those inputs. ASC 820 establishes a fair value hierarchy that prioritizes the inputs
used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
three levels of the fair value hierarchy are as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets
are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information
on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities
and listed equities.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
2 - Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly
observable as of the reported date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
3 - Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used
with internally developed methodologies that result in management&#8217;s best estimate of fair value.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company's financial instruments consisted of cash, prepaid expense, deposit, accounts payable and accrued liabilities, line of
credit, loan from stockholders and convertible debt. The estimated fair value of cash, prepaid expense, deposit, accounts payable
and accrued liabilities, line of credit, loan from stockholders approximates its carrying amount due to the short maturity of
these instruments. The recognition of the derivative values of convertible debt are based on the weighted-average Black-Scholes
option pricing model, which the Company&#8217;s classifies as a level three of the fair value measurement hierarchy.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
derivative liabilities are measured at fair value using quoted market prices and estimated volatility factors based on historical
quoted market prices for the Company's common stock, and are classified within Level 3 of the valuation hierarchy.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2017.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" id="hdcell" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level
1</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level
2</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level
3</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; width: 56%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Derivative
Liabilities</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td id="ffcell" style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,070,530</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,070,530</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following table provides the assets and liabilities carried at fair value measured on a recurring basis as of September 30, 2018.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level
1</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level
2</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level
3</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; width: 56%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Derivative
Liabilities</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,804,731</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,804,731</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of September 30, 2018, the Company had a derivative liability amount of $6,804,731 which was classified as a Level 3 financial
instrument.</font></p><p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Effective
October 15, 2015, the Company adopted the Equity Incentive Plan (the &#8220;Plan&#8221;) whereby the Company may issue common
stock, not to exceed 25,000,000 shares of common stock of the Company (the &#8220;<u>Stock Award</u>&#8221; or &#8220;<u>Stock
Awards</u>&#8221;), or grant options to acquire common stock of the Company (the &#8220;<u>Option</u>&#8221; or &#8220;<u>Options</u>&#8221;),
(the &#8220;<u>Stock</u>&#8221;), which may be in the form of Stock Awards, or &#8220;incentive stock options&#8221; (&#8220;<u>ISOs</u>&#8221;)
intended to satisfy the requirements of Section 422 of the Internal Revenue Code of 1986, as amended, and the regulations thereunder
(the &#8220;<u>Code</u>&#8221;), or &#8220;non-qualified stock options&#8221; (&#8220;<u>NQSOs</u>&#8221;).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Pursuant
to the Plan, the exercise price of stock awards or options granted under the plan which are designated as NQSO&#8217;s shall not
be less than 85% of the fair market value of the stock subject to the Option on the date of grant, and not less than 65% of the
fair market value of the stock subject to the Stock Award on the date of grant. To the extent required by applicable laws, rules
and regulations, the exercise price of a NQSO granted to any person who owns, directly or by attribution of stock possessing more
than ten percent of the total combined voting power of all classes of stock of the Company or of any Subsidiary (a &#8220;Ten
Percent Stockholder&#8221;) shall in no event be less than 110% of the fair market value of the stock covered by the Stock Award
or Option at the time the Stock Award or Option is granted.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The fair market value is defined
as the closing price of such stock on the date before the date the value is to be determined on the principal recognized securities
exchange or recognized securities market on which such stock is reported. If selling prices are not reported, its fair market
value shall be the mean between the high bid and low asked prices for such stock on the date before the date the value is to be
determined (or if there are no quoted prices for such date, then for the last preceding business day on which there were quoted
prices). If there is no established market for the stock, the fair market value will be determined in good faith by the Administer.
The Administer will either be the Board of Directors or an Administer appointed by the Board of Directors. We do not have outstanding
stock awards or options to purchase shares of our common stock under the Plan at September 30, 2018.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Authorized</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company is authorized to issue 500,000,000 shares of preferred stock, having a par value of $0.0001 per share, and 10,000,000,000
shares of common stock, having a par value of $0.0001 per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Baker
Myers Warrant Transfer &#8211; Voting Trust</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
March 14, 2017, Baker Myers executed that certain Voting Trust Agreement, of which the Company approved, in which Baker Myers
agreed to the assignment and transfer of the ownership interest of its stock purchase warrant (the &#8220;Warrant&#8221;) for
the right to purchase a total of 3,000,000 shares of Series B Preferred Stock, owned and held by Baker Myers, to the Voting Trustee,
which shall, thereafter, upon the completion by the Company of a reverse split of 1:1000 of its Common Stock, be simultaneously
exercised and converted by the Company and Voting Trustee into a total of 30,000 of Series B Preferred Stock, and 2,970,000 shares
of Common Stock, to be held by the Voting Trustee in the Voting Trust for the benefit of Baker Myers, in accordance with the terms
of the Voting Trust Agreement (as described more fully herein).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Birch
First Warrant Transfer &#8211; Voting Trust</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
March 14, 2017, Birch First Capital Investments LLC (f/k/a Birch First Capital Fund LLC), a Delaware limited liability company
(&#8220;Birch First Capital&#8221;) executed that certain Voting Trust Agreement, of which the Company approved, in which Birch
First Capital agreed to the assignment and transfer of the ownership interest of its stock purchase warrant (the &#8220;Warrant&#8221;)
for the right to purchase a total of 4,000,000 shares of Series B Preferred Stock, owned and held by Birch First Capital to the
Voting Trustee, which shall, thereafter, upon the completion by the Company of a reverse split of 1:1000 of its Common Stock,
be simultaneously exercised and converted by the Company and Voting Trustee into a total of 40,000 shares Series B Preferred Stock,
and 3,960,000 shares of Common Stock, to be held by the Voting Trustee in the Voting Trust for the benefit of Birch First Capital,
in accordance with the terms of the Voting Trust Agreement (as described more fully herein).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Ricketts
and Antol Stock Transfer &#8211; Voting Trust</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
or about March 14, 2017, Dr. James G. Ricketts, and Stephen Antol (each a Stockholder) executed a Voting Trust Agreement, which
the Company approved in advance, in which each of the Stockholder, jointly and severally, agreed to each deposit with the Voting
Trustee a total of 500,000 shares of Series B Preferred Stock (for a total of 1,000,000 shares), owned and held by each of them
as Stockholders, as referenced in the execution of two (2) separate assignments, which shall, thereafter, upon the completion
by the Company of a reverse split of 1:1000 of its Common Stock, be converted by the Company and Voting Trustee into a total of
5,000 shares of Series B Preferred Stock each (for total of 10,000 shares), and 495,000 shares of Common Stock each (for a total
totaling 990,000 shares), to be held by the Voting Trustee in the Voting Trust for the benefit of each such Stockholder, in accordance
with the terms of the Voting Trust Agreement (as described more fully herein).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Voting
Trust - Change of Control</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
deposit of the Series B Preferred Stock on March 14, 2017 from Ricketts and Antol into the Voting Trust creates a change of control
with the Trustee having voting rights of 1,100,000,000 shares as a class pursuant to the preferences in the Series B Preferred
Stock designation. This also makes the Voting Trust a related party.&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Issued
and Outstanding</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Preferred
Stock</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">At
September 30, 2018, the Company there is 1,100,000 shares of preferred stock outstanding.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Common
Stock</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">At
September 30, 2018, the Company has 131,858 shares of common stock issued and outstanding.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the Nine months ended September 30, 2018, the Company issued 62,675 shares of common stock for the conversion of $5,397 of debt
and $931 of accrued interest.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Warrants
Issued for Services</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of September 30, 2018, the Company had no outstanding warrants.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
or about March 14, 2017, the Company WOD Holdings Inc., a Delaware corporation (&#8220;WODH&#8221;) executed a Joint Venture Agreement
(the &#8220;Joint Venture Agreement&#8221;) pursuant to Exhibit I of the Amendment No. 2 to the Definitive Agreement (the &#8220;Amendment
No. 2&#8221;), whereby the parties agreed to form a Joint Venture (the &#8220;Joint Venture&#8221;) to further develop and manage
the current business of WOD Market LLC, a Colorado limited liability company, as a provider of intelligent retail solutions for
gym owners and coaches, including the management of retail sales, up front inventory purchases, ongoing inventory management,
payments, marketing, and related services. This Joint Venture Agreement began immediately upon signing on March 14, 2017.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Under
the terms of the Joint Venture, the initial ownership interest of WOD was 20% owned by the Company, with the remaining 80% owned
WODH, with the option of Company to provide additional capital contributions to WOD in increments of not less than $10,000 up
to a total of $8 million dollars in the aggregate, which included an equity exchange of up to a total of 800 units (80%) of WOD
owned initially by WODH to the Company for a total of approximately 199,000 shares of Series B Preferred Stock and approximately
18,801,000 shares of Common Stock of the Company (the &#8220;Shares&#8221;) to be issued to WODH upon the completion of a final
closing on or before December 31, 2018, under the terms set forth in Amendment No. 2. The Joint Venture terminates at the earlier
of the completion of the final closing equity exchange or December 31, 2018, whichever occurs first.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Until
a minimum of at least $4 million in additional capital contributions have been made by the Company to WOD, resulting in a controlling
ownership interest of not less than 60% of WOD by the Company, all the Shares of Company stock earmarked for the equity exchange
with WODH are being held in a Voting Trust (as defined elsewhere in this filing), along with other key shareholder positions.
The Voting Trust was organized, in order to recapitalize the Company post a 1:1000 reverse split (which was previously approved),
pending effectiveness after the Company becomes a current and fully-reporting public company.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Contractor
Agreements </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
or about March 14, 2017, the Company and Brenton Mix, an individual (and, also the Chairman, Chief Executive Officer, President
and Chief Financial Officer of the Company) (&#8220;Mix&#8221;) executed a Contractor Agreement (the &#34;Mix Agreement&#34;)
to formalize the engagement Mix (pursuant to his original appointment dated January 10, 2017) for his continued services to the
Company and for such other services, as deemed necessary by the Board of Directors, from time to time, for a period of three (3)
years from the date of execution, and renewal for two (2) successive one (1) year terms unless terminated early. The Company agreed
to compensate Mix in the form of (a) a total of $10,000 per month for the first year, $12,500 per month for the second year, $15,000
per month for the third year, and $20,000 per month for subsequent terms, payable in cash or converted into restricted common
stock of the Company, at Mix&#8217;s discretion, pursuant to the Company's Stock Option Plan then in effect, and (b) the right
to participate in future stock options then in effect, including other terms and conditions set forth therein.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
or about March 14, 2017, the Company and Richard Phillips, an individual (and, also the Secretary, Treasurer and Director of the
Company) (&#8220;Phillips&#8221;) executed a Contractor Agreement (the &#34;Phillips Agreement&#34;) to formalize the engagement
Phillips (pursuant to his original appointment dated January 10, 2107 and further appointment on March 14, 2017) for his continued
services to the Company and for such other services, as deemed necessary by the Board of Directors, from time to time, for a period
of two (2) years from the date of execution, and renewal for three (3) successive one (1) year terms unless terminated early.
The Company agreed to compensate Phillips in the form of (a) a total of $1,250 per month for the first Nine months of the first
year, $2,500 per month for the second Nine months of the first year, $5,000 per month for the second year and for subsequent terms,
payable in cash or converted into restricted common stock of the Company, at Phillips&#8217;s discretion, pursuant to the Company's
Stock Option Plan then in effect, and (b) the right to participate in future stock options then in effect, including other terms
and conditions set forth therein.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Departure
of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
March 14, 2017, the Company accepted the resignation of Sarah Myers as the Secretary and Treasurer of the Company, effective immediately.
Concurrently, on March 14, 2017, the Company appointed Richard Phillips as Secretary and Treasurer of the Company, in addition
to his current position as a member of the Board of Directors of the Company. There was no disagreement between Ms. Myers and
the Company.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Subsequent
to our Nine months ended September 30, 2018 and to the date of filing of this Report, the Company took the following actions and
also issued the additional shares of common stock in connection with the convertible notes:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">None.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
consolidated financial statements have been prepared in accordance with generally accepted accounting principles and include the
accounts of the Company and its subsidiaries, Dynamic Energy Development Corporation and Transformation Consulting, Inc. All intercompany
balances and transactions have been eliminated in consolidation.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
preparation of financial statements in conformity with United States generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. The Company regularly evaluates estimates and assumptions related to intangible assets and deferred income tax asset valuation
allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors
that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the
carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources.
The actual results experienced by the Company may differ materially and adversely from the Company&#8217;s estimates. To the extent
there are material differences between the estimates and the actual results, future results of operations will be affected.&#160;</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Certain
reclassifications have been made in Statement of Operations for the year 2017 to the period ended September 30, 2017. These reclassifications
impacted the classification of certain items within the Statement of Operations: relating to classification of interest expense.
The reclassifications had no impact on previously reported total operating expenses, net loss, or stockholders' deficit.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Development
costs are expensed in the period they are incurred unless they meet specific criteria related to technical, market and financial
feasibility, as determined by management, including but not limited to the establishment of a clearly defined future market for
the product, and the availability of adequate resources to complete the project. If all criteria are met, the costs are deferred
and amortized over the expected useful life, or written off if a product is abandoned. For the three months ended September 30,
2018, the Company incurred no development costs. As of September 30, 2018, the Company had no deferred product development costs.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Potential
benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted
the accounting standards codified in ASC 740, Income Taxes as of its inception. Pursuant to those standards, the Company is required
to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses have not been
recognized in these financial statements because the Company cannot be assured it is more likely than not that it will utilize
the net operating losses carried forward in future years.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">ASC
740-10-25 prescribes recognition thresholds that must be met before a tax position is recognized in the financial statements and
provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.
An entity may only recognize or continue to recognize tax positions that meet a &#34;more likely than not&#34; threshold. Based
on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its
financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company does not have any unrecognized tax benefits as of September 30, 2018 that, if recognized, would affect the Company's effective
income tax rate. The Company's policy is to recognize interest and penalties related to income tax issues as components of income
tax expense. The Company did not recognize or have any accrual for interest and penalties relating to income taxes as of September
30, 2018 and December 31, 2017.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Cash
includes all highly liquid instruments with an original maturity of three months or less at the date of purchase. At September
30, 2018, the Company had no cash equivalents.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company&#8217;s financial instruments consist of cash and cash equivalents, accounts payable, accrued liabilities, line of credit
payable, loans from a related party, contingent consideration payable, and convertible note payable. The carrying amount of these
financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market
rates unless otherwise disclosed in these financial statements.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company values its derivative instruments under FASB ASC 820 which defines fair value, establishes a framework for measuring fair
value, and expands disclosures about fair value measurements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Fair
value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would
use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation
technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair
value balances based on the observability of those inputs. ASC 820 establishes a fair value hierarchy that prioritizes the inputs
used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
three levels of the fair value hierarchy are as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
1 &#8211; Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets
are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information
on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities
and listed equities.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
2 &#8211; Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly
observable as of the reported date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
3 &#8211; Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may
be used with internally developed methodologies that result in management&#8217;s best estimate of fair value.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company's financial instruments consisted of cash, prepaid expense, deposit, accounts payable and accrued liabilities, line of
credit, loan from stockholders and convertible debt. The estimated fair value of cash, prepaid expense, deposit, accounts payable
and accrued liabilities, line of credit, loan from stockholders approximates its carrying amount due to the short maturity of
these instruments. The recognition of the derivative values of convertible debt are based on the weighted-average Black-Scholes
option pricing model.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company recognizes revenue in accordance with the FASB ASC Section 605-10-S99, Revenue Recognition, Overall, SEC Materials (&#34;Section
605-10-S99&#34;). Section 605-10-S99 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive
evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and
(4) collectability is reasonably assured.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">We
review our long-lived assets, including intangible assets subject to amortization, for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment, if any, is measured as the excess
of the carrying amount over the fair value based on market value (when available) or discounted expected cash flows of those assets,
and is recorded in the period in which the determination is made. Intangible assets not subject to amortization are tested annually
for impairment and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset
is impaired</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Basic
loss per common share (&#8220;EPS&#8221;) is calculated by dividing the net loss available to common shareholders by the weighted
average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities
or other contracts to issue common stock were exercised or converted into common stock. The number of common shares that are exercisable
or converted into common stock is not material to effect diluted EPS results. Further, since the Company shows losses for the
periods presented basic and diluted loss per share are the same for all periods presented&#160;</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 33.75pt"><font style="font: 10pt Times New Roman, Times, Serif">i.
In situations where common shares are issued and the fair value of the goods or services received is not readily determinable,
the fair value of the common shares is used to measure and record the transaction. The fair value of the common shares issued
in exchange for the receipt of goods and services is based on the stock price as of the earliest of the date at which: the counterparty&#8217;s
performance is complete;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 33.75pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 33.75pt"><font style="font: 10pt Times New Roman, Times, Serif">ii.
commitment for performance by the counterparty to earn the common shares is reached; or</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 33.75pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 33.75pt"><font style="font: 10pt Times New Roman, Times, Serif">iii.
the common shares are issued if they are fully vested and non-forfeitable at that date.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
December 1, 2005, the Company adopted the fair value recognition provisions codified in ASC 718, Compensation-Stock Compensation.
The Company adopted those provisions using the modified-prospective-transition method. Under this method, compensation cost recognized
for all periods prior to December 1, 2005 includes: a) compensation cost for all share-based payments granted prior to, but not
yet vested as of November 30, 2005, based on the grant-date fair value and b) compensation cost for all share-based payments granted
subsequent to November 30, 2005, based on the grant-date fair value. In addition, deferred stock compensation related to non-vested
options is required to be eliminated against additional paid-in capital. The results for periods prior to December 1, 2005 were
not restated.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company accounts for equity instruments issued in exchange for the receipt of goods or services from parties other than employees
in accordance with ASC 505, Equity. Costs are measured at the estimated fair market value of the consideration received or the
estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments
issued for consideration other than employee services is determined on the earliest of a performance commitment or completion
of performance by the counterparty.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company accounts for common share purchase warrants at fair value in accordance with ASC 815, Derivatives and Hedging. The Black-Scholes
option pricing valuation method is used to determine fair value of these warrants. Use of this method requires that the Company
make assumptions regarding stock volatility, dividend yields, expected term of the warrants and risk-free interest rates.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Other
than as set forth below, management does not believe that any recently issued, but not yet effective accounting pronouncements,
if adopted, would have a material effect on the accompanying financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">None.</font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2017.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" id="hdcell" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level
1</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level
2</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level
3</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; width: 56%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Derivative
Liabilities</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td id="ffcell" style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,070,530</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,070,530</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following table provides the assets and liabilities carried at fair value measured on a recurring basis as of September 30, 2018.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level
1</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level
2</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level
3</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; width: 56%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Derivative
Liabilities</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,804,731</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,804,731</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td>
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